Insurers hoping for a jolt out of the soft market doldrums in February will be disappointed to learn that, according to the latest
The composite rate for U.S. property/casualty coverages last month registered -5%, which marks the fourth consecutive month where the composite rate measured -5%.
“It seems the market is stuck at minus 5% on a composite basis," says Richard Kerr, CEO of MarketScout. "The rates by industry, coverage or account size change a bit each month but generally all categories are staying in the same range of premium reductions.”
The report goes on to note that general liability remained the most aggressively priced coverage at -6%, down from -5% in January. Manufacturing, service and contractor business rose slightly in premium from -5% to -4%. Energy accounts were priced more competitively in February at -5% versus as opposed to 4% the month before. Additionally, one unnamed insurer was primarily responsible for driving the softer market in energy casualty accounts.
A summary of the February 2011 rates by coverage, industry class and account size is set forth below:
Coverage Class
Commercial Property — Down 5%
Business Interruption — Down 4%
BOP — Down 2%
Inland Marine — Down 3%
General Liability — Down 6%
Umbrella/Excess — Down 3%
Commercial Auto — Down 3%
Workers’ Compensation — Down 1%
Professional Liability — Down 1%
D&O Liability — Down 1%
EPLI — Down 1%
Fiduciary — Down 1%
Crime — Down 1%
Surety — Down 1%
Industry Class
Manufacturing — Down 4%
Contracting — Down 4%
Service — Down 4%
Habitational — Down 3%
Public Entity — Down 3%
Transportation — Down 3%
Energy — Down 5%
Account Size
Small Accounts (Up to $25,000) — Down 1%
Medium Accounts ($25,001 – $250,000) — Down 4%
Large Accounts ($250,001 – $1,000,000) — Down 5%
Jumbo Accounts (Over $1,000,000) — Down 5%